Question

Calculate the purchase consideration.
Machinery= Rs.112500, Furniture = 37500,
Stock = Rs.60,000, Debtors = Rs.30000,
Cash = Rs.5000,Creditors= Rs.60000,
outstanding Wages= Rs.20,000, Bills
Payable= Rs.25,000. All the assets and
liabilities were taken over at book values
except stock taken over at Rs.70,000 and
creditors taken over at Rs.50,000. *
O
1,70,000
O
1,50,000
1,80,000
O 1,60,000​

Answer 1

Answer:

1,60,000

Given:

Machinery= Rs.112500, Furniture = 37500,Stock = Rs.60,000, Debtors = Rs.30000,Cash = Rs.5000,Creditors= Rs.60000,outstanding Wages= Rs.20,000, Bills Payable= Rs.25,000. All the assets and liabilities were taken over at book values except stock taken over at Rs.70,000 and creditors took over at Rs.50,000.

Solution:

Purchase consideration =  agreed on the value of assets takeover - agreed value of liabilities takeover

Total assets = 112500 + 37500 + 70000+ 30000 + 5000

                     = 2,55,000

Total liabilities = 50000 + 20000 + 25000

                         =  95000

Total assets - total liabilities

=2,55,000 - 95000

= 160000

Therefore, the answer is 1,60,000.

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